Kent Reliance for Intermediaries, has made several changes to its landlord range, including cutting rates by up to 30 basis points and raising maximum beds from 10 to 20 for houses in multiple occupation properties.  

The lender, which is part of the OSB Group, says its changes cover:   

• Existing buy-to-let core range 75% loan to value deals have been reduced by up to 30bps  
• Launches 70% LTV BTL limited edition products, with rates starting at 4.59%  
• For houses in multiple occupation applications up to six beds, interest coverage ratio calculations are based on 125% for limited companies and 140% for personal ownership.
• For large houses in multiple occupation applications up to 20 beds, interest coverage ratio calculations are based on 145% for limited company and 175% for personal ownership   
• Houses in multiple occupation remortgages are allowed within six months of valuation, if improvement works have taken place  

Kent Reliance for Intermediaries group intermediary director Adrian Moloney says: “We know from recent research carried out by BVA BDRC, that the average rental yield for houses in multiple occupation are a full percentage point higher than the overall average rental yield.

“It’s 6.3% for houses in multiple occupation compared to an overall average yield of 5.3% — so this is an attractive offering for experienced landlords looking to maximise their rental yields.”  

Moloney adds: “This move also reflects the increasing professionalisation of the market where we are seeing seasoned property investors actively seeking to increase their portfolios against a backdrop of strong tenant demand with affordability challenges.”   

“From a tenant prospective, this is where houses in multiple occupation come into their own as they are often a more affordable renting option as sharing quality accommodation with others can be cheaper than renting alone, you have the company of others should you want it but at the same time you have your own personal and private space.”